Altman Z-Score Calculator

Z-score is a statistical tool for foreseeing the chances of a company about to get bankrupt. It represents the creditworthiness of a company from publicly available data. Altman Z-Score Calculator is an online aid to such statistical calculations. This concept of Altman Z-Score was developed by Edward I Altman in the 1960s with the aim of evaluating the default rate of listed manufacturing companies. Later on, it was revised for private and non-manufacturing concerns as well.

For Calculating Z-Score, consider the following formula:

For Public Company:

Z-Score = x1*1.2 + x2*1.4 + x3*3.3 + x4*0.6 + x5*0.999

For Private Company:

Z-Score = x1*0.717 + x2*0.847 + x3*3.107 + x4*0.420 + x5*0.998

For Non-Manufacturing Company:

Z-Score = x1*6.56 + x2*3.26 + x3*6.72 + x4*1.05


  • x1 = Liquidity Factor = Working Capital / Total Assets
  • x2 = Leverage Factor = Retained Earnings / Total Assets
  • x3 = Profitability Factor = EBIT / Total Assets
  • x4 = Solvency Factor = MV or BV of Equity / Total Liabilities
  • x5 = Activity Factor = Net Sales / Total Assets

Altman Z-Score Calculator

How to Calculate using Calculator?

The user has to input the following figure to obtain a Z-score of the different types of companies in seconds. He is simply required to put the following details into the calculator.

Working Capital – Working capital is an important indicator of short-term liquidity. It can be obtained by subtracting current liabilities from current assets.

Retained Earnings – It is that portion of the profit that is retained by the company after distributing dividends to equity shareholders. It is the surplus profit left with the company which it uses for future investments and growth of the company.

EBIT – EBIT or Earnings Before Interest and Tax determine the operating income generated by the company. It does not consider the interest and tax amount for the purpose of calculation.

MV / BV of Equity – For calculation of the Z-score of a public company, the user has to insert the market value (MV) of the share of the company. And, since the shares of a private company are not publicly traded, they cannot have market value, and therefore, the user is required to provide the book value (BV) of the shares.

Total Liabilities – Total liabilities are the sum total of all short-term as well as long-term liabilities of a company.

Net Sales – Net sales are a result of total sales less sales returns.

Total Assets – Total assets of the company include all current and non-current assets of the company.

All the above figures can easily be obtained from the company’s financial statements.

Excel Calculator – Altman Z Score

You can also download our excel based calculator for Altman Z Score.

Excel Calculator for Altman Z Score (3 downloads )

Sanjay Borad

Sanjay Bulaki Borad

MBA-Finance, CMA, CS, Insolvency Professional, B'Com

Sanjay Borad, Founder of eFinanceManagement, is a Management Consultant with 7 years of MNC experience and 11 years in Consultancy. He caters to clients with turnovers from 200 Million to 12,000 Million, including listed entities, and has vast industry experience in over 20 sectors. Additionally, he serves as a visiting faculty for Finance and Costing in MBA Colleges and CA, CMA Coaching Classes.

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